The USD/CAD pair remains range-bound as traders await crucial jobs data from both the US and Canada. Bets on further Fed rate cuts and a rebound in oil prices are influencing the pair's movement.
The USD/CAD pair continues its sideways consolidation for the third consecutive day on Friday, hovering within a tight range around the 1.4300 mark. Traders appear hesitant to make significant directional bets ahead of the crucial US/Canadian monthly jobs report , scheduled for release later this week. The pair's lack of momentum stems from several contributing factors.
Bets that the Federal Reserve will maintain its easing bias, potentially leading to two interest rate cuts by the end of the year, keep US dollar bulls subdued. Depressed US Treasury bond yields, hovering near their lowest levels since December, further weigh on the USD. Meanwhile, a rebound in crude oil prices from a one-month low provides support to the commodity-linked Canadian dollar (CAD), capping the upside potential for the USD/CAD pair. The recent decision by US President Donald Trump to delay 25% trade tariffs against Canada and Mexico has also been absorbed by investors. Although the Bank of Canada's (BoC) dovish outlook might limit aggressive bullish bets on the CAD, the upcoming jobs reports from both countries will likely dominate market sentiment and provide a clearer direction for the USD/CAD pair.
USD/CAD US Dollar Canadian Dollar Interest Rates Jobs Report Nonfarm Payrolls Oil Prices Federal Reserve Bank Of Canada
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